To preclude firms from engaging in "sham" exchanges to generate artificial gains,GAAP requires that the transaction must be approved by the SEC.

Question

Quizplus · Accepted Answer

GAAP (Generally Accepted Accounting Principles) does not require SEC approval for transactions. However, the SEC has the authority to investigate and take action against firms that engage in fraudulent or deceptive accounting practices.

To Preclude Firms from Engaging in "Sham" Exchanges to Generate